Claim when the damage is clearly more than your excess and more than you could comfortably pay for yourself. Think twice when the repair would cost little more than the excess, because a claim can cost you your no-claims discount. Either way, make sure to check it out before you decide to pay for it yourself. If you cannot tell which side of the line you are on, ring us.
When you should claim
- Serious damage, such as a fire, a burst pipe, an oil leak or storm damage. This is what you have been paying for.
- Water damage, even when it looks small. In our experience, even a small escape of water or a damaged ceiling will in most cases cost thousands to repair, depending on the circumstances, and that is an amount most people will consider claiming. Add the cost of replacing a typical timber floor after a water leak, and you would be very foolish not to consider a claim.
- When you cannot see how far the damage goes. Hidden damage often makes claims far bigger than originally anticipated. Water-stained walls may be hiding far worse damage behind the plasterboard, to insulation or to floors below.
What a claim costs you
- The excess. This is the part of every claim you pay yourself. It is usually €200 to €500 for standard claims, but it can vary depending on your policy. Some claims have a higher excess. The escape of water excess could be double the normal excess, and subsidence excesses are usually €750 to €2,000, sometimes more.
- Your claims history. When switching insurer, you will be asked to declare your claims history, typically over the last 3 or 5 years. Claims in that period may affect your premium. Similarly, when renewing with your existing insurer, your claims history will influence the premium quoted. Typically, premiums in the following years will be higher, but that is not always the case. A claim can also cost you your no-claims discount if your policy has one. Talking to your broker or insurer may help narrow this down.
When paying for it yourself makes sense
- When the repair costs about the same as your excess, or only a little more. You would get little or nothing back, and you could lose your discount for it.
- When it is wear and tear type damage, or old damage that cannot be linked to something your policy covers, such as escape of water, fire or storm damage. That typically won't be covered.
We don't put a figure on it, because everyone's circumstances are different. What some people consider small is often a large amount to others.
Do not leave it too long
Policies often have a 30-day period in which you must notify insurers. Others simply say as soon as possible. There is often some flexibility, but that is not always the case. It's best to contact your insurer and notify them of the incident, or have your Loss Assessor do so.
The CCPC's advice is to contact your insurer or broker as soon as you discover a problem. An insurer cannot automatically refuse a claim because you were late telling it, if the delay did not prejudice the insurer's position. Broadly, that means its ability to investigate the circumstances of the claim. But that is not something to rely on, as most of us wouldn't know what prejudicing an insurer's position involves unless we are involved in insurance in a professional capacity.
Before you decide, make one phone call
Every policy is different, and it is hard to judge damage from the outside. If you do not know whether it is big enough to bother claiming for, phone us on 061 311266. As your independent Loss Assessor in Limerick, we can often help decide that in a quick phone call.
And if a claim is worth making, it is worth having a Loss Assessor.
Iggy Duffy BSc (Surv), Dip L.A., Director, Premium Claims Consultants